That is just one project, and we don't know the actual points of contention. Not too much should be taken from this. IBM is, and will remain for some time, the #1 SC vendor.

There is always that risk when you're dealing with bleeding-edge attempts. No guarantees that it will work as expected or that it can be developed on time and on budget.

Stupid government expects to get the same considerations as if it were COTS (commercially off-the-shelf). IBM couldn't meet the original specifications in the time frame and for the cost defined in the contract. They asked for some leeway; academic government bureaucrats said no, IBM says, "Then thank you for the opportunity, but we'll just take our toys and go home."

Which is always a possibility. The problem for IBM is that these government types wanted fixed price and fixed schedule. No room for potential showstoppers. So when one came along, IBM had to decline to continue.